Final Exits at Scandal-Hit Davy Important, Finance Minister Says
(Bloomberg) -- Top Irish securities firm Davy’s decision to shut its bond desk and lay off the last remaining staff involved in a scandal that has rocked Dublin’s financial community is an “important development,” Finance Minister Paschal Donohoe said.
Four staff were made redundant by the closure, Davy said late on Monday in Dublin. It also said all 16 individuals involved in the deal which has plunged the company into controversy have now exited.
Davy didn’t identity the workers affected or say how many of them were involved in the deal which has cost some of its top executives their jobs. The move came after the nation’s debt office stripped the firm of its role as a primary dealer in government bonds.
“The nature of the decision that was made by the NTMA reflects how seriously this issue has been taken by the government and reflects the expectations that we have regarding the standards that need to be met,” Donohoe told reporters.
Donohoe’s comments followed a finding by regulators that the firm displayed a “lack of candor” and providing “misleading details” during an investigation. The case involved a consortium of employees buying bonds from a client in a personal capacity, without the customer knowing they were the buyers. Davy was fined 4.13 million euros ($4.9 million).
Later today, central bank officials are set to accuse Davy of creating an “elevated risk of investor detriment” when they appear before lawmakers at a parliamentary committee.
“The government continues to treat this issue very, very seriously,” Donohoe said. The scandal won’t hurt Ireland’s ability to borrow on the bond market, he said.
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